New Zealand unemployment rate increased to 6.4%

According to the latest figures released, the total unemployment rate in New Zealand has increased to 6.4 per cent during the second quarter of the year till June.

The unemployment rate of 6.4 per cent is moderately higher than the 6.3 per cent expected by economists in the country. The country recorded unemployment rate of 6.2 per cent, which is its lowest level in three years. The data showed that 5,000 more people were looking for work and the participation rate increased 0.1 percentage point to 68 per cent.

The Statistics department said that the private sector wages rose 0.4 per cent during the quarter indicating that the jobs market in the country has improved gradually as the economy stabilises.

Reserve Bank governor Graeme Wheeler has indicated that the interest rates are likely to remain low in the country at a record low of 2.5 per cent this year.

The growing momentum in the housing market and construction sector has pushed up inflation and this may lay the ground for future increase in interest rates. Experts said that there are no indications that the higher wages were pushing up inflation in the country.